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Please show your work core: 0 of 1 pt 2 of 8 (8 complete) HW Score: 85.42%, 6.83 of 8 pts Problem 13-2 (algorithmic) Question

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core: 0 of 1 pt 2 of 8 (8 complete) HW Score: 85.42%, 6.83 of 8 pts Problem 13-2 (algorithmic) Question Help Ganado and Equity Risk Premiums. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.30%, the company's credit risk premium is 3.70%, the domestic beta is estimated at 1.14, te international beta is estimated at 0.98, and the company's capital structure is now 45% debt. The before tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 7.60% and the company's effective tax rate is 42%. Calculate both he CAPM and ICAPM weighted average costs of capital for the following equity risk premium estimates. a. 8.50% b. 740% . 540% d. 4.30% a. Using the domestic CAPM, what is Ganado's weighted average cost of capital if the firm's equity risk premium is 8.50%? %(Round to two decimal places.)

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